California Energy Efficiency Strategic Plan CEESP

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California Energy Efficiency Strategic Plan
(CEESP)

• Workshops on Draft Plan
• February 21 (San Diego)
• February 22 (Los Angeles)
• February 27 (San Francisco)

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Energy Efficiency Strategic Planning Process
PROCESS
Nov 5
Nov/Dec 2007
Jan 2008
Feb/Mar/Apr 2008
May 2008

• Workshops and webinars conducted
• Groups develop content of sector plans and
  cross-cutting proposals

• CPUC holds pre-hearing conference to launch
  Strategic Plan Process
• 4 Sectors and 8 cross-cutting themes established

• Writers receive input reports from sector groups
• Conveners and IOU Leads present to writers
• Writers create the Draft Strategic Plan

• IOUs submit draft Strategic Plan on 2/8/08
• IOUs hold public workshops in Feb.
• IOUs collect comments on draft Strategic Plan

• IOUs submit final Strategic Plan 5/15/08
• IOUs submit individual 2009-2011 Energy
  Efficiency Portfolios on 5/15/08

• COMMERCIAL
• CPUC, IOUs, Conveners, Stakeholders

Public Workshop San Francisco

• RESIDENTIAL
• CPUC, IOUs, Conveners, Stakeholders

HVAC
Public Workshop Los Angeles
Revise Draft Plan
Marketing, Education and Outreach
Workforce Education Training
Low Income
Emerging Tech./Codes Standards
DSM Integration
Local Government
Integration / Writing

• AGRICULTURE
• CPUC, IOUs, Conveners, Stakeholders

Public Workshop San Diego

• INDUSTRIAL
• CPUC, IOUs, Conveners, Stakeholders

HVAC Big Bold Energy Efficiency Strategy spans
Residential and Small Commercial sectors
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Background Plan upholds other key EE efforts in
California

• Energy Action Plan Places energy efficiency
  first in the loading order of utility resources
• Integrated Energy Policy Report (IEPR)
  Recommends California set out on a path to
  achieve all economic energy efficiency
• 2006-2008 portfolio Will produce an estimated
  2.7 billion in net resource benefits a 2-to-1
  return on the efficiency investment
• Current Legislation AB32, AB2021, Low Income,
  CSI, Energy Independence and Security Act of
  2007, and National Action Plan for Energy
  Efficiency
• Decision (07-10-032) directs IOUs to develop this
  Draft California Energy Efficiency Strategic Plan

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Statewide Energy Efficiency Strategic Plan
Objective

• Everything is at www.californiaenergyefficiency.co
  m
• Objective EE is Business as Usual in
  California by 2020
• Integration EE, DR, CSI, Low Income, and other
  DSM offerings
• Innovation Accelerate new efficient products
  and practices
• Collaboration Expand collaboration across
  energy stakeholders across California and the
  Western U.S.
• Directional Long-term focus on market
  transformation and codes standards with
  near-term EE policy rule changes Lead to next
  generation EE programs
• Aspirational Strategic plan objectives are not
  goals utilities will not be held responsible for
  attainment
• Todays Workshop
• IOU team will introduce each sectors and issues
  vision and strategies of the draft Strategic Plan
• We welcome your comments after this brief
  presentation

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Fundamental change in energy efficiency is
required for California Permanent Market
Transformation

• Push-pull strategies
• Incentives include rebates, innovative or
  discounted financing, and/or non-financial
  support. Carrots that help pull consumers into
  EE.
• Codes Standards mandate max. energy consumption
  levels for buildings, appliances /or equipment.
  Sticks that push builders manufacturers.
• Education Information inform consumers others
  about energy use opportunities associated with
  energy efficiency. Including labeling,
  benchmarking, internet-based comparisons,
  professional and trade materials, school
  curricula, peer-to-peer exchanges and other
  resources.
• Market Transformation is both a cross-cutting
  strategy and a desired end-point.
• Price and Rate Design can incent or inhibit
  energy efficiency and demand-side management
  actions. It is often called getting prices
  right.
• Emerging Technologies rely on research,
  development, demonstration and/or deployment to
  move energy-efficient products and developments
  from the lab bench into the commercial
  marketplace.

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Relationships Between the Strategic Planning
Process
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Long Term Planning

• The Plan is a living document and will change
  based on market, policy, and technological
  conditions
• The goals and vision of the Plan can only be
  achieved through continual incorporation of
  efficiency gains into Codes Standards and
  increasing commercialization of cost-effective
  energy efficiency services and collaboration/suppo
  rt from all stakeholders
• The Long Term Planning Process will include
• A screening and analysis process to fully address
  all the key actors and strategies
• An annual Summit to review activities from the
  previous year, outline near-term actions and
  showcase exemplary accomplishments
• The California Energy Efficiency Alliance (CEEA)
  as a forum to leverage national and statewide
  efforts

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Long-Term Planning Vision and Approach
LONG-TERM PLANNING

• Vision California will have a long-term energy
  efficiency planning process that includes all
  principal stakeholders and defines strategies and
  goals supported by each stakeholders short,
  medium and long-term plans and actions.
• Approach
• Enroll more key stakeholders prior to initiating
  the planning cycle.
• Complete data development and collection efforts,
  including market assessment and potential.
• Complete data analysis and modeling efforts
  including addressing costs, cost-effectiveness,
  rate and consumer cost impacts, and risk/benefits
  of strategies to properly select and prioritize
  activities and funding sources.
• Conduct public workshops.
• Discuss commitments with key participants
  responsible for funding or implementing
  strategies.
• Prepare draft Plan for review by key stakeholders.

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Commercial Vision and Goals
COMMERCIAL

• Vision Commercial buildings will be put on a
  path to zero net energy by 2030 for all new
  buildings and for many existing ones. Innovative
  technologies and practices will dramatically grow
  in use in the coming years through a combination
  of technology development, financing and
  incentives, Codes Standards and market pull.

• Goals
• All new construction building starts and a
  significant number of existing buildings will be
  zero net energy by 2030.
• The HVAC industry is transformed to yield optimal
  performance for systems used by commercial
  consumers.
• Markets provide both demand pull and supply
  push for zero net, and ultra low, energy
  buildings.
• Utility programs are integrated and provide price
  signals, financing mechanisms other incentives
  for owners/managers builders/producers of
  zero-energy buildings
• CPUC, IOUs, CEC, et al use the vision statement
  as basis for long-term strategic planning
  actions, assuring other market participants of
  their goals and intents thru 2030.

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Commercial Sector Overview

• Commercial sector consumes 38 of California
  electricity and over 1/4 of natural gas
• Major end uses lighting (35), space
  conditioning (29) and refrigeration (13) plug
  loads (e.g. copiers, printers) are fast-growing
  consumer
• Diverse sector office buildings only 25 of
  sectors electricity use, retail is 15,
  restaurants and food stores at 9 each
• Drivers for energy efficiency include
• CPUC Big Bold initiative All new comml
  buildings to be zero net energy by 2030
• CPUC Big Bold initiative small comml and
  resid. HVAC to be transformed
• Most commercial buildings are regulated by Title
  24 building code
• Key challenges to be overcome include
• Getting builders/developers, owners, tenants to
  embrace zero net energy
• Existing buildings, especially inland ones, are
  biggest challenge
• Bringing new materials and technologies to bear
  on the challenge
• Aligning state and local policies and regulations
  with the goals
• Most of comml space is leased, and owners and
  tenants have different perspectives
• Success will require coordination with other
  sectors in many cross-cutting areas

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Commercial Actions and Strategies (1 of 2)
COMMERCIAL
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Commercial Actions and Strategies (2 of 2)
COMMERCIAL
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Residential Vision
RESIDENTIAL

• Vision Residential energy use will be
  transformed by 2020. Current and new channels of
  energy delivery will be strongly leveraged.
  Demand-side management (DSM) services will be
  fully integrated. Consumers will demand and the
  market will provide highly efficient products and
  services that will dramatically reduce energy
  usewith no loss of comfort or equipment
  efficacycreating a win for the economy, the
  environment and society.

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Residential Overview

• Homes account for about one-third of California
  electricity and natural gas use
• Electricity is used for lighting (22) and
  equipment including consumer electronics
• Gas is used mostly for space and water heating
  (44 each)
• Drivers for energy efficiency include
• CPUC Big Bold initiative All new homes to be
  zero net energy by 2020
• CPUC intermediate goal 50 of new homes to meet
  Tier II standards by 2011
• Growing public awareness of the need to address
  climate change
• Key challenges to be overcome include
• Changing the mindset of home builders and buyers
  to embrace zero net energy
• Bringing new materials and technologies to bear
  on the challenge
• Aligning state and local policies and regulations
  with the goals
• Addressing these and other challenges
  successfully in the short time available
• Success will require coordination with other
  sectors in many areas including
• Workforce, Education Training Marketing,
  Education Outreach
• Emerging Technologies Codes Standards
• DSM Coordination Integration Local Governments
• Transformation of small HVAC

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Residential Strategies and Actions (1 of 2)
RESIDENTIAL
Utilities refers to IOUs and POUs.
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Residential Strategies and Actions (2 of 2)
RESIDENTIAL
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Agriculture Vision
AGRICULTURE

• Vision Energy efficiency and renewable energy
  resource development will support the long-term
  profitability and stability of California
  agriculture, including through increased
  profitability, support of AB32 compliance, and
  support of renewable energy goals.

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Agriculture Sector Overview

• Agriculture accounts for about seven percent (7)
  of California energy consumptionmore if
  embedded energy of irrigation water is counted
• Consumption is concentrated in irrigation,
  process heat and refrigeration end uses
• The CPUC excluded the water-energy nexus in
  agriculture from this Plan
• Key drivers for agricultural energy efficiency
  are
• Climate change, including AB 32 compliance
• Increasing reliance on ground water resources
  with higher lifting costs
• Increasing global competition, requiring lower
  production costs
• Key challenges to energy planning in the sector
  include
• Lack of consistency in energy data across utility
  and government sources
• Increasing regulatory attention to energy, air
  and water implications of agriculture, leading to
  potential for conflict in policy goals, programs
  and outcomes
• Planning for agricultural energy efficiency must
  be coordinated with other sectors in at least
  three areas
• Workforce Education Training
• Marketing, Outreach Education
• Emerging Technologies

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Agriculture Strategies and Actions
AGRICULTURE
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Industrial Vision and Goals
INDUSTRIAL

• Vision California industry will be vibrant,
  profitable and embrace resource efficiency as a
  competitive advantage.
• Goal The primary goal for industry is to
  minimize the energy intensity of products
  produced in California.

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Industrial Overview
INDUSTRIAL

• Industry consumes approximately 51,000 GWh of
  electricity (4,700 MW) and 730,000 MCF of natural
  gas annually.
• Drivers for energy efficiency include
• AB32 Compliance Rules, in particular early
  actions.
• Regulatory uncertainty
• Growing public awareness of the need to address
  climate change
• Key challenges to be overcome include
• Production takes priority over energy efficiency
• Resource limitations (people, capital)
• Aligning state and local policies and regulations
  with the goals
• Lack of qualified assistance and information
• As multi-state/national, reducing production is
  an acceptable answer to regulation
• Success will require coordination with other
  areas including
• Workforce, Education Training
• Emerging Technologies
• DSM Coordination Integration

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Industrial Strategies and Actions (1 of 2)
INDUSTRIAL
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Industrial Strategies and Actions (2 of 2)
INDUSTRIAL
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Heating, Ventilation, and Air Conditioning
(HVAC) Vision and Goals
HVAC

• Vision Residential and small commercial HVAC
  will be transformed to ensure that technology,
  equipment, installation and maintenance are of
  the highest quality to promote energy efficiency
  and peak load reduction in Californias climate.

• Goals
• Higher quality installation and maintenance,
  resulting in part from increased consumer
  awareness and training for HVAC technicians
• More consistent and effective compliance,
  enforcement and verification of existing building
  standards
• Development and widespread deployment of new air
  conditioning technologies optimized for the needs
  of Californias climate, and of system
  diagnostics that can detect and report HVAC
  equipment problems, and
• Shifting building industry design and
  construction to integrated building performance
  as a standard practice.

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Heating, Ventilation and Air Conditioning
Overview

• Major end use in California, but installation and
  maintenance are unsatisfactory
• Central AC in 95 of new homes on hot summer
  days is 30 of peak power demand
• 15-50 of central air conditioning systems were
  not being properly installed leading to 20-30
  increase in the peak energy needed and 30
  increase in carbon emissions
• Drivers for energy efficiency include
• CPUC Big Bold initiative small comml and
  resid. HVAC to be transformed
• Meeting Calif.s peak demand becoming
  increasingly difficult and expensive
• Climate change, peak/reliability
• Key challenges to be overcome include
• Developing and deploying technologies suited to
  Calif.s climate, esp. hot, dry areas
• Federal regulations and national industry doesnt
  focus on hot, dry performance
• Transforming practices of HVAC contractors and
  individual technicians
• Consumers not aware of cost or importance of poor
  installation/maintenance
• Pursuing peak reductions simultaneously with
  efficiency gains
• Success will require coordination with other
  sectors areas including Residential, Comml,
  MEO, WET, Emerging Technology and Codes
  Standards

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HVAC Actions and Strategies
HVAC
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Codes and Standards Vision
CODES AND STANDARDS

• Vision A broad range of aggressive and
  continually improving energy Codes Standards
  will be adopted to greatly accelerate the
  widespread deployment of zero-net and highly
  efficient buildings and equipment. The
  effectiveness of Codes Standards will be
  enhanced by improved code compliance as well as
  coordinated voluntary efficiency activities.

• Several elements of better Codes Standards
  performance
• Greater stringency in the underlying codes
• More comprehensive coverage of end uses,
  including plug loads and building operations
• Better enforcement and compliance
• More sophisticated analytics regarding whole
  buildings and measures
• Improved understanding of energy decision makers
  and their response to market interventions.

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Codes Standards Overview

• Probably the most effective and important EE
  policy tool
• CEC Calif. CS saved consumers gt 56 billion in
  elec. natl gas costs since 78 averted 15
  large powerplants. Current ones to save another
  23B by 13. (2007 IEPR)
• Buildings are primarily regulated at state level
  by Calif. Title 24 code appliances/equipment
  primarily regulated at federal level, but also by
  Calif. Title 20
• CS more effective and used in resid. comml
  sectors and HVAC than in industry or ag.
• Key considerations regarding Codes Standards
• Major attribute CS are mandatory (but
  compliance varies) then become standard
  practice
• Major limiters CS are better suited for
  eliminating worst performers than incenting best
  performers mandatory nature can create
  resistance
• Part of the Market Transformation spectrum, along
  with voluntary EE programs policies
• Key challenges to be overcome include
• Multiple players inc. CEC, US DOE, plus
  legislature/Governor and Congress/Pres.
• Compliance is already significant concern, and
  more so if/as CS ratchet up
• Code will need re-aligning from reduction to
  zero-based to meet zero net energy goals
• Optimally reconciling with other regulatory
  regimes (e.g. AB32)

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Codes Standards Actions and Strategies (1 of 2)
CODES STANDARDS
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Codes Standards Actions and Strategies (2 of 2)
CODES STANDARDS
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Demand-Side Management (DSM) Coordination and
Integration Vision
DSM COORDINATION AND INTEGRATION

• Vision All demand-side management programs are
  coordinated and, as appropriate, integrated to
  increase the penetration of energy efficiency and
  avoid lost opportunities.
• Coordination/Integration can be pursued at two
  levels
• Energy efficiency, conservation, demand response,
  demand reduction, and on-site generation.
• Energy, water, regulated greenhouse gases.
• Integration/Coordination offers generally
  accepted opportunities for greater benefits
  through synergy and by avoiding lost
  opportunities
• Integrating across technologies and/or objectives
  is not easy
• Administrative boundaries inhibit consistent
  goals and complicate funding
• Knowledge and training gaps limit the number of
  people qualified to identify integrated measures
• Differences among DSM objectives may lead to
  inconsistent/undesired results (e.g. increase
  electricity use to reduce waste to achieve water
  quality requirements).

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DSM Coordination Integration Actions and
Strategies
DSM COORDINATION INTEGRATION
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Workforce Education Training Vision
WORKFORCE EDUCATION TRAINING

• Vision By 2020, Californias workforce is
  trained and engaged to provide the human capital
  necessary to achieve Californias economic energy
  efficiency and demand-side management potential.
• WET focuses on workforce issueseducating and
  training people to perform the jobs needed to
  reach Californias clean energy goals.
• A significant barrier to increased EE activity is
  a shortage of human resources trained and
  motivated to identify and implement EE technology
  and operations improvements.

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Workforce Education Training Actions and
Strategies (1 of 2)
WORKFORCE EDUCATION TRAINING
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Workforce Education Training Actions and
Strategies (2 of 2)
WORKFORCE EDUCATION TRAINING
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Marketing, Education, and Outreach Vision
MARKETING, EDUCATION, AND OUTREACH

• Vision Californians are engaged as partners in
  the states energy efficiency, demand-side
  management and clean energy efforts for 2009 and
  beyond with the dual goals of informing them of
  the importance of energy efficiency, and their
  opportunities to take action.
• MEO actions create and maintain a consumer
  culture that understands, accepts and pursues the
  financial and environmental benefits of EE.
• Motivating consumers to continue to engage in
  increasing levels of EE practices and purchases
  is limited by the belief of many consumers that
  they are already doing everything they can.
• MEO must both motivate and inform on an ongoing
  basis to a consumer population that is diverse
  (and will continue to be diverse) in level of
  knowledge and level of motivation.

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Marketing, Education Outreach Actions and
Strategies (1 of 2)
MARKETING, EDUCATION OUTREACH
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Marketing, Education Outreach Actions and
Strategies (2 of 2)
MARKETING, EDUCATION OUTREACH
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Emerging Technologies Vision
EMERGING TECHNOLOGIES

• Vision Technology advancement related to energy
  use has matchedor even eclipsedthe consumer
  electronics industry in innovation, time to
  market and consumer acceptance.
• In this plan, Emerging Technologies addresses
  technology at all points along the development
  continuum, from the lab to the market-- and
  includes operations.
• In addition, it includes social science research
  as it affects market demand for technology,
  acceptance of new technology and operational
  practices.
• To achieve the 2020 goals requires new technology
  as well as information and training to integrate
  and operate existing cutting edge technologies to
  maximize their EE benefits.
• This requires clear, consistent and effective
  efforts to target the broad range of RDD
  activities to supporting EE goals.

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Emerging Technologies Actions and Strategies (1
of 2)
EMERGING TECHNOLOGIES
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Emerging Technologies Actions and Strategies (2
of 2)
EMERGING TECHNOLOGIES
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Roles of Local Governments Vision and Goals
LOCAL GOVERNMENT

• Vision By 2020, all of Californias local
  governments will be operating within an energy
  efficiency and renewable resource environment
  that is characterized by integrated state
  approaches, local engagement and cooperation, and
  informed energy action.

• Local engagement and cooperation. Cities
  counties can actively engage EE GHG issues, and
  participate in local regional EE initiatives
• Informed energy action. Cities counties can
  aggressively pursue EE goals and work w/ their
  utilities for community outreach to impact
  constituents energy usage
• Best practices and education. Government
  buildings infrastructure can show-case EE best
  practices. Professional licensing examinations
  should include an energy component for inspectors
  contractors licensing.
• Integrated state approaches. Cities counties
  can pursue their energy efficiency policies more
  effectively if state agencies actions become
  better integrated across demand-side options.

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Roles of Local Governments Overview

• Some 600 Local Governments in Calif. with great
  diversity
• (local government refers primarily to cities
  and counties also there are also important roles
  for regional government, metropolitan planning
  organizations, school districts, special
  districts and MOUs.)
• Key challenges to be overcome include
• Changing the mindset of home builders and buyers
  to embrace zero net energy
• Bringing new materials and technologies to bear
  on the challenge
• Aligning state and local policies and regulations
  with the goals
• Addressing these and other challenges
  successfully in the short time available
• Many roles for Local Government re EE,
  including

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Roles of Local Governments Actions and
Strategies (1 of 3)
LOCAL GOVERNMENT
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Roles of Local Governments Actions and
Strategies (2 of 3)
LOCAL GOVERNMENT
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Roles of Local Governments Actions and
Strategies (3 of 3)
LOCAL GOVERNMENT
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Low Income Energy Efficiency (LIEE) Vision
LOW INCOME

• Vision To provide all eligible consumers the
  opportunity to participate in the LIEE programs
  and to offer those who wish to participate all
  cost-effective energy efficiency measures in
  their residences by 2020.
• (same as adopted by the CPUC)

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Low Income Energy Efficiency Overview

• The CPUC has adopted a vision for LIEE
• To provide all eligible consumers the
  opportunity to participate in the LIEE programs
  and to offer those who wish to participate all
  cost-effective energy efficiency measures in
  their residences by 2020
• The Commission also has directed a fresh look at
  LIEE to consider an expanded role as an energy
  resource
• 30 (5.5 million) IOU residential customers
  qualify for LIEE programs
• The LIEE strategies presented in this draft Plan
  are preliminary
• Planning for LIEE started late due to timing of
  the CPUC LIEE Decision (12/24/07)
• LIEE planning is ongoing and will catch up by
  filing of the final Plan (5/15/08)
• Expanding the role of LIEE as an energy resource
  may have particular implications for certain
  strategies operating across sectors, including
• Marketing, Education Outreach
• DSM Coordination Integration
• Local Governments

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Low Income Energy Efficiency Actions and
Strategies
LOW INCOME
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Energy Efficiency Policy Issues Key Policy
Challenges
POLICY CHALLENGES
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Energy Efficiency Program Planning Process
PLANNING DEADLINES